Air Arabia Q profit up 12% to Dh94m

By

Staff

PublishedMonday, February 17, 2014

Air Arabia today announced its financial results for the fourth quarter ended December 31, 2013, as the company once again delivered high levels of profitability and growth across the breadth of its operations.

Air Arabia’s net profit for the fourth quarter ending December 31, 2013, stood at Dh94 million, up 12 per cent compared to Dh84 million reported in 2012. The airline’s turnover for the last quarter 2013 was Dh811 million, an increase of 8 per cent compared to Dh753 million reported for the same period in 2012. The airline carried over 1.5 million passengers in fourth quarter of this year, an increase of 15 per cent compared to last quarter of 2013.

Commenting on the results, Sheikh Abdullah Bin Mohammad Al Thani, Chairman of Air Arabia, said: “Air Arabia has enjoyed consistent and sustained growth since launching operations back in October 2003, and our performance in the year of our tenth anniversary was no exception. The network expansion strategy which has guided the airline for a decade continued to reap rewards in 2013, helping us to once again deliver a strong set of results”.

For the full year 2013, the airline reported a net profit of Dh435 million, an increase of 2 per cent compared to the same period of 2012.

Turnover for the full year ending December 31, 2013, stood at Dh3.2 billion, up 14 per cent compared to the same period in 2012. More than 6.1 million passengers flew with Air Arabia in 2013, a 15 per cent increase compared to 5.3 million passenger carried in 2012. The airline’s seat load factor– or passengers carried as a percentage of available seats – for the full year ending December 31, 2013, stood at impressive 80 per cent.

“We are extremely confident about the long-term fundamentals of the aviation sector in the region and believe we have the right business model, operating base and infrastructure in place to cement our position as the region’s leading low-cost carrier operator. We will continue to explore opportunities and enter into new ventures that will best serve the airline’s ambitious growth plans and at the same time provide highest returns to our shareholders” Al Thani continued.

These results were announced following a meeting of the Board of Directors of Air Arabia today who have proposed a dividend distribution of 7.25 per cent of capital, which is equivalent to 7.25 fils per share. This proposal is subject to ratification by Air Arabia shareholders at the company’s upcoming Annual General Meeting.

Air Arabia added 8 destinations to its network in 2013, including Yerevan in Armenia; Lar and Mashhad in Iran; Baghdad in Iraq; Sialkot in Pakistan; Abha, Ha’il and Hofuf in Saudi Arabia. The airline took delivery of seven new A320 aircraft from Airbus in 2013, bringing its total fleet size to 35.